K.C. Ward Financial Broker Craig David Dima Under Investigation by FINRA

Regulatory action is pending against New York financial advisor for unauthorized trading, misrepresentation and omissions, among other allegations

In August 2016, the Financial Industry Regulatory Authority (FINRA) initiated an investigation into allegations against Craig David Dima made by one of his long-standing customers. The complaint alleges that Dima made approximately 41 unauthorized sales of a company’s stock in the account of a senior customer. It also alleges that to conceal this unauthorized trading, Dima made fraudulent misrepresentations and omissions to the customer. In fact, it is alleged that Dima falsely told the customer that the sales were the result of computer issues, human error, or statements to that effect, rather than his unauthorized trades.

The customer, a 72-year old retired employee of Colgate-Palmolive Company (Colgate), worked 28 years for the company and accumulated the stocks throughout her career.

In addition to the 41 unauthorized sales, it is alleged that Dima also made unsuitable trades in the customer’s account. Specifically, on approximately 11 occasions, Dima sold all, or substantially all, of the customer’s “blue chip” dividend-paying Colgate stock, and after waiting a short period, purchased the same stock back into the customer’s account.

As a result of these unsuitable trades, the customer paid mark-ups, mark-downs, and transaction costs of approximately $376,000 and was deprived of approximately $127,000 in dividend payments. The customer also suffered trading losses of approximately $72,000 from three of the unauthorized sell/buy sequences of the Colgate transactions.

As such, FINRA Department of Enforcement is requesting that the disciplinary panel:

• Find that Dima did, in fact, commit the violations charged and alleged in their investigation

• Order that one or more sanctions be imposed against Dima, including that he be required to disgorge fully any and all ill-gotten gains and/or make full and complete restitution, together with interest

• Order that Dima bear the cost of the proceedings

• Make specific findings that Dima willfully violated the Exchange Act rules

During Dima’s 21-year securities industry career, he was registered with 18 different brokerage firms, which most recently include:

• K.C. Ward Financial in Ronkonkoma, NY since September 2009

• American Capital Partners, LLC in Hauppauge, NY from November 2008 to October 2009

• Andrew Garrett Inc. in New York, NY from November 2004 to November 2008

• LH Ross & Company, Inc. in Boca Raton, FL from May 2003 to December 2004

• Harrison Securities, Inc. in Port Washington, NY from October 2002 to May 2003

• First Montauk Securities Corp in Red Bank, NJ from June 2001 to October 2002

• Sterling Financial Investment Group, Inc. in Boca Raton, FL from November 2000 to May 2001

While disciplinary action is pending against Dima, it is important for those who may have invested and lost money with him through the years to know they have rights. If you or someone you know has suffered financial loss through the actions of Craig David Dima, or any other financial advisor, you may be entitled to reclaim some or all of your losses through securities arbitration.

Reach out to the Silver Law Group today to learn about your options. We represent individual and institutional investors across the United States who have lost money at the hands of a trusted financial advisor. You will be able to talk to an attorney experienced in securities arbitration and have any of your questions answered.

Since the Silver Law Group is a contingency-based firm, you won’t owe us anything unless you recover lost money. Call us at 954.755.4799 or just fill out our online contact form.